Newtek Announces the Signing of a Letter of Intent for New $75.0 Million SBA 504 Credit Facility with Capital One
March 29 2018 - 9:00AM
Newtek Business Services Corp. (“Newtek” or the “Company”) (Nasdaq:
NEWT), an internally managed business development company ("BDC"),
today announced the execution of a letter of intent for a proposed
$75.0 million senior secured revolving credit facility through
Capital One, National Association (“Capital One”). The
facility will be available to a newly formed wholly owned portfolio
company, Newtek Business Lending, LLC (“NBL”), to originate loans
under the SBA 504 loan program to small businesses for the purposes
of, among others, financing the purchases of buildings, land and
machinery, as well as construction of new facilities or
modernizing, renovating or converting existing facilities. We
expect the facility to contain a $75 million accordion feature
which would allow NBL to increase the borrowing available under the
facility to $150 million, subject to lender approval. This
SBA 504 facility will be separate and distinct from the $100
million SBA 7(a) revolving credit facility that Newtek Small
Business Finance, LLC, has through Capital One. The facility is
subject to final documentation and approvals.
Barry Sloane, Chairman, President and Chief Executive Officer
said, “Capital One has been a great partner for over 10
years. This new facility, once closed, will be integral to
our goal of expanding our portfolio company SBA 504 loan program
originations. We are pleased that the market has continued to
recognize Newtek’s and our portfolio companies’ proven track record
of loan originations and loan performance through multiple interest
rate cycles, demonstrated by the growth in available funding and
continued improvement of financing terms through Capital One and
our other lenders. In addition to the new proposed Capital
One SBA 504 facility, the existing line of credit used to finance
portfolio company originated SBA 504 loans is in the process of
being increased to $40.0 million from $25.0 million. We
intend to consolidate portfolio company SBA 504 lending within NBL
going forward. We believe with a dedicated staff and the
increase in available financing, our portfolio company is well
positioned to meet guidance of closing between $75 million to $100
million in SBA 504 loans in 2018.”
About Newtek Business Services
Corp.
Newtek Business Services Corp., Your Business
Solutions Company®, is an internally managed BDC, which along with
its controlled portfolio companies, provides a wide range of
business services and financial products under the Newtek® brand to
the small- and medium-sized business (“SMB”) market. Since
1999, Newtek has provided state-of-the-art, cost-efficient products
and services and efficient business strategies to SMB accounts
across all 50 states to help them grow their sales, control their
expenses and reduce their risk.
Newtek’s and its portfolio companies’ products and services
include: Business Lending, SBA Lending Solutions, Electronic
Payment Processing, Technology Solutions (Cloud Computing,
Data Backup, Storage and Retrieval, IT Consulting), eCommerce,
Accounts Receivable Financing & Inventory Financing, The Newtek
Advantage, Insurance Solutions, Web Services, and Payroll and
Benefits Solutions.
Newtek® and Your Business Solutions Company® are
registered trademarks of Newtek Business Services Corp.
Note Regarding Forward Looking
Statements
This press release contains certain
forward-looking statements. Words such as “believes,” “intends,”
“expects,” “projects,” “anticipates,” “forecasts,” “goal” and
“future” or similar expressions are intended to identify
forward-looking statements. All forward-looking statements involve
a number of risks and uncertainties that could cause actual results
to differ materially from the plans, intentions and expectations
reflected in or suggested by the forward-looking statements. Such
risks and uncertainties include, among others, intensified
competition, operating problems and their impact on revenues and
profit margins, anticipated future business strategies and
financial performance, anticipated future number of customers,
business prospects, legislative developments and similar matters.
Risk factors, cautionary statements and other conditions, which
could cause Newtek’s actual results to differ from management’s
current expectations, are contained in Newtek’s filings with the
Securities and Exchange Commission and available through
http://www.sec.gov/. Newtek cautions you that forward-looking
statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected
or implied in these statements.
SOURCE: Newtek Business Services Corp.
Investor Relations & Public
RelationsContact: Jayne Cavuoto Telephone: (212) 273-8179
/ jcavuoto@newtekone.com
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